Ford boss Lisa Brankin warns against taxing electric cars


Sales figures from car industry body, the Society of Motor Manufacturers and Traders (SMMT) show how far car makers have to go to reach the target.

Fully-electric vehicles made up around 22.4% of total new car sales, data for 2025 up to 31 October shows. This time last year it was 18.1%.

In September, the UK new car market experienced its best performance since 2020, driven by a surge in EV sales which hit a record high, according to SMMT figures.

However, Ms Brankin pointed to heavy discounting across car sales forecourts as well as a lower resale value in the second-hand EV market as indicators that the market was “distorted”.

“When that [target] was set a number of years ago, the outlook for demand around electric vehicles was buoyant and there seemed to be momentum behind electric vehicles. What we’re seeing now is that customer demand is not in line with that ambition,” Ms Brankin said.

A large share of new EVs are sold to businesses for their employees and they benefit from lower rates of “company car tax” compared with diesel or petrol-fuelled options.

Ms Brankin has urged the Chancellor to retain this tax benefit of companies “greening” their vehicle fleets.


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